Ravn Air Group made this announcement:
Bankruptcy Court Approves a Plan of Liquidation That Enables an Auction and Sales Process:
The Honorable Brendan L. Shannon in the United States Bankruptcy Court for the District of Delaware on June 25 approved a Plan of Liquidation that also includes a sales process for “going concern” bidders who are interested in buying the company and its three airlines during an upcoming auction that will take place following the 4th of July holiday weekend.
The auction will offer Ravn, with its secured lenders, an opportunity to sell the company and all or a substantial portion of its assets in a sale that would be approved by the Court on July 9th. Leading into today’s hearing approximately 30 bidders expressed interest in buying all or some of the Air Group’s assets. Of these, five strategic buyers submitted bids to buy the entire Air Group.
“The outcome of today’s hearing turned out as we had hoped, and we are excited that our employees, our customers, and the many communities we serve will now have a very real opportunity to see Ravn back in the skies later this summer. While this has been a very difficult process for everyone affected, we strongly believe it will be a success for our creditors and all Alaskans if our upcoming auction leads to a successful buyer who wants to preserve the vital jobs and essential air service that Ravn previously provided to over 115 different communities in our state,” said Dave Pflieger, Ravn’s President & CEO.
A specific date for the auction has not yet been set, but it will occur prior to the July 9th hearing. Should there not be a sale of the company as a “going concern,” the Chapter 11 Liquidation Plan that the Court approved today calls for Ravn’s assets to be put into a Liquidation Trust and sold by the Liquidation Trustee.
Before it filed for Chapter 11 protection on April 5, 2020, following a 90% drop in bookings and revenue due to the arrival of COVID-19 in Alaska, and a resultant state-mandated travel ban to slow the spread of the Pandemic, Ravn was Alaska’s largest and most vital regional air carrier. The company and its three separate airlines were supported by over 1,300 employees, and it carried passenger, mail, freight, and charter customers to more than 115 destinations throughout Alaska.
Headquartered in Anchorage, Ravn Air Group operated a safe and highly reliable fleet of 72 aircraft on more than 400 flights per day, annually carrying over 750,000 passengers per year, from hubs and communities including Anchorage, Fairbanks, Galena, Barrow, Nome, Kotzebue, Unalakleet, Bethel, Aniak, St. Mary’s, McGrath, Dillingham, and King Salmon. In late 2018, Ravn acquired Peninsula Airways and its five Saab 2000s as part of a sale process that ended PenAir’s two-year financial bankruptcy and added the company to the Ravn Air Group portfolio. Later, in 2019, Ravn Air Group started Essential Air Service flying to St. Paul in the Pribilof Islands with its highly reliable 29 & 37 seat DHC-8 (Dash 8) aircraft.
Ravn Air Group’s two Part 121 air carriers are FAA-approved Safety Management System (“SMS”) airlines. In addition, in May 2018 and again in April 2020, RavnAir Alaska became one of a few regional airlines in the U.S. to pass the challenging International Air Transportation Association’s (IATA) Safety and Operational Audit (IOSA), and in 2019 RavnAir Alaska became the first and only IOSA-approved Part 121 regional airline in the State of Alaska.